Travelers 2014 Annual Report Download - page 192

Table of Contents
THE TRAVELERS COMPANIES, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
3. INVESTMENTS (Continued)
Proceeds from sales of fixed maturities classified as available for sale were $1.05 billion, $1.64 billion and $1.09 billion in 2014, 2013 and 2012,
respectively. Gross gains of $44 million, $66 million and $70 million and gross losses of $12 million, $25 million and $9 million were realized on sales
in 2014, 2013 and 2012, respectively.
At December 31, 2014 and 2013, the Company's insurance subsidiaries had $4.78 billion and $4.77 billion, respectively, of securities on deposit
at financial institutions in certain states pursuant to the respective states' insurance regulatory requirements. Funds deposited with third parties to
be used as collateral to secure various liabilities on behalf of insureds, cedants and other creditors had a fair value of $39 million and $59 million at
December 31, 2014 and 2013, respectively. Other investments pledged as collateral securing outstanding letters of credit had a fair value of
$22 million and $42 million at December 31, 2014 and 2013, respectively. In addition, the Company utilized a Lloyd's trust deposit at December 31,
2014 and 2013, whereby owned securities with a fair value of approximately $151 million and $181 million, respectively, held by an insurance
subsidiary were pledged into a Lloyd's trust account to support capital requirements for the Company's operations at Lloyd's.
Equity Securities
The cost and fair value of investments in equity securities were as follows:
Proceeds from sales of equity securities were $158 million, $86 million and $37 million in 2014, 2013 and 2012, respectively. Gross gains of
$27 million, $16 million and $8 million and gross losses of $3 million, $1 million and less than $1 million were realized on those sales (excluding
impairments) in 2014, 2013 and 2012, respectively.
Real Estate
The Company's real estate investments include warehouses, office buildings and other commercial land and properties that are directly owned.
The Company negotiates commercial leases with individual tenants through unrelated, licensed real estate brokers. Negotiated terms and
conditions include, among others, rental rates, length of lease period and improvements to the premises to be provided by the landlord.
191
Gross
Unrealized
Fair
Value
(at December 31, 2014, in millions)
Cost
Gains
Losses
Public common stock
$
400
$
295
$
4
$
691
Non - redeemable preferred stock
179
31
2
208
Total
$
579
$
326
$
6
$
899
Gross
Unrealized
Fair
Value
(at December 31, 2013, in millions)
Cost
Gains
Losses
Public common stock
$
385
$
226
$
1
$
610
Non - redeemable preferred stock
301
34
2
333
Total
$
686
$
260
$
3
$
943